It’s an urban legend that the government launched the Internet. …The truth is a more interesting story about how innovation happens—and about how hard it is to build successful technology companies even once the government gets out of the way. …If the government didn’t invent the Internet, who did? Vinton Cerf developed the TCP/IP protocol, the Internet’s backbone, and Tim Berners-Lee gets credit for hyperlinks. …But full credit goes to the company where Mr. Taylor worked after leaving ARPA: Xerox. It was at the Xerox PARC labs in Silicon Valley in the 1970s that the Ethernet was developed to link different computer networks. Researchers there also developed the first personal computer (the Xerox Alto) and the graphical user interface that still drives computer usage today. …So having created the Internet, why didn’t Xerox become the biggest company in the world? The answer explains the disconnect between a government-led view of business and how innovation actually happens. Executives at Xerox headquarters in Rochester, N.Y., were focused on selling copiers. From their standpoint, the Ethernet was important only so that people in an office could link computers to share a copier. …As for the government’s role, the Internet was fully privatized in 1995, when a remaining piece of the network run by the National Science Foundation was closed—just as the commercial Web began to boom. Economist Tyler Cowen wrote in 2005: “The Internet, in fact, reaffirms the basic free market critique of large government. Here for 30 years the government had an immensely useful protocol for transferring information, TCP/IP, but it languished. . . . In less than a decade, private concerns have taken that protocol and created one of the most important technological revolutions of the millennia.”

It’s nice to see this urban legend of effective government punctured weakened, but let’s close out this post with a thought experiment. Let’s assume that the federal government deserves the lion’s share of the credit for the Internet.

Our Tax Dollars at Work?

Or we’re sometimes told that NASA generated big benefits, such as Tang and microwave ovens, and maybe those claims are true.

Would any of this justify Obama’s proposals to expand the size and cost of the federal government?

So the parts of the budget that theoretically might generate some positive spin-offs are trivial. The vast majority of spending, by contrast, is consumed by inefficient tax-and-transfer entitlement programs.

And what are Obama’s two biggest “accomplishments” since taking office? The so-called stimulus and Obamacare, two pieces of legislation that expand the unambiguously unproductive portions of the federal budget.

In other words, like most other politicians, Obama is like an unethical used car salesman. He lures the unsuspecting onto the lot with glib talk of good roads and the Internet, but they wind up driving away with a lemon known as the welfare state.

P.P.P.S. The government may not have invented the Internet, but it sure is anxious to tax it, with everyone from state politicians to U.N. bureaucrats trying to stick their hands in the cookie jar.

==========================================

Addendum: My Cato colleague Jim Harper and others tell me that government played a bigger role than argued by Crovitz, so the first part of this post overstates the argument against government as incubator. But that underscores the importance of what I wrote in the concluding part of the post.

13 Responses

Although I sympathise with the thesis, and I am well aware that ARPAnet was ONE network while the whole idea of Internet was to connect SEVERAL networks (which is why it’s called that), Grovitz’ article was utter bunk. PARC did not invent Internet, not even close. He mentiones that Vince Cerf did, great. Does he think we won’t know that he worked in Stanford?

And god, giving credence to Bob Metcalfe. That guy wanted to make e-mail taxed in order to fight spam! Seriously. Inventing Ethernet does not make one an expert in anything else apparently; least of all the small government.

The clumsy attempts to whitewash the fact that TCP/IP was seeded with government money are ridiculous, transparently false. Instead, serious scholarship on the role of government in the networking should focus on giant elephant of government-sponsored monopolies and international standard bodies creating the hideous abortion of OSI, X.25, X.400, and the like. The damage those government-directed efforts dealt to Internet was enormous, and it’s not government’s achievement that TCP/IP succeeded. Governments did everything they could to strangle it. That is the part Obama neglects to mention when he talks how “government created Internet”, and the rest is just Grovitz’ ignorance and agenda-setting.

I designed the I/O board that went into the World’s First BBS. I helped Randy and Ward with some of the code (hardware interface). We had no government help that I’m aware of. We did it with our own money.

The BBS thing led to FIDO Net. The actual precursor of the internet because it got people used to the online world. I felt really late to the Internet world. There were already 20 million users when I joined during the Christmas season of ’95.

It has grown a bit since then and I’m now among the early adopters. How time changes perspective.

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[…] what Obama conveniently overlooks is that spending on so-called public goods is only about 10 percent of the federal budget. The vast majority of government spending is for unambiguously harmful outlays on transfers, […]

[…] what Obama conveniently overlooks is that spending on so-called public goods is only about 10 percent of the federal budget. The vast majority of government spending is for unambiguously harmful outlays on transfers, […]

I believe everything said was very logical.
But, what about this? suppose you typed a catchier title?
I am not saying your information isn’t good, however suppose you added a title to possibly grab folk’s attention?

I mean Thank the Private Sector for the Internet, not Government | International Liberty is a little vanilla.
You ought to look at Yahoo’s front page and watch how they create post headlines to get viewers interested. You might try adding a video or a related picture or two to get people interested about what you’ve got to say.
In my opinion, it would bring your website a little livelier.